Macroeconomic policy challenges for New Zealand: monetary policy

New Zealand is a small open economy in a globalised world. The close linkages with international financial markets present challenges for domestic stabilisation policy, which are explored in this paper in the Lowy Institute Perspectives series. There may be lessons, too, for Australia as financial markets become increasingly integrated internationally. These issues raise, once again, the desirability of even closer economic linkages across the Tasman.

New Zealand is a small open economy in a globalised world. The close linkages with international financial markets present challenges for domestic stabilisation policy, which are explored in this paper in the Lowy Institute Perspectives series. There may be lessons, too, for Australia as financial markets become increasingly integrated internationally. These issues raise, once again, the desirability of even closer economic linkages across the Tasman.